According to data monitoring by SunSirs, the soybean oil palm oil market in 2020 will continue the surge in 2019. After the high market dive at the beginning of the year, the market will rise after May, the price continues to rise, and the price peaks again. At the beginning of the year, the average price of soybean oil in the market was 7,023 yuan/ton, and at the end of the year, the average price of soybean oil was 8,686 yuan/ton, an increase of 23.68%. At the beginning of the year, the average market price of palm oil was 6,562 yuan/ton, and at the end of the year, the average market price of palm oil was 7,264 yuan/ton, and the price increased by 10.7%.

According to the annual comparison of soybean oil from 2018 to 2020, it can be seen that the price of soybean oil in 2020 is higher than that in 2018 and 2019. In 2018, soybean oil fell by 7.69% as a whole; in 2019, soybean oil soared by 36.11%. After the soy oil market plunged in the first four months of 2020, the price bottomed out and continued to rise sharply, with an increase of more than 23%.

On December 28, 2020, the average price of soybean oil in the market exceeded 8,600 yuan/ton. In 2018, the average price of soybean oil on the market was 5,160 yuan/ton, and in 2019, the average price of soybean oil was 6,963 yuan/ton. The overall price difference was as high as 1600-3500 yuan/ton. Soybean oil in 2020 will continue the bull market in 2019.

According to the monthly increase and decrease chart of soybean oil from January to November 2020, it can be seen that after four consecutive months of decline in 2020, soybean oil has risen for seven consecutive months. The biggest drop was in February, with an overall decrease of 16.32%, and the biggest increase was in July, with an overall increase of 12.31%. After New Year's Day, due to the flat demand in the catering industry, soybean oil fell for four consecutive months. The market began to recover in May, and the rise continued to strengthen after July. The third quarter and the fourth quarter were all red. In December, soybean oil continued its upward trend, with an increase of more than 6%.

According to the annual comparison chart of palm oil from 2018 to 2020, it can be seen that the price of palm oil in 2020 is higher than that in 2018 and 2019. On the basis of the 56% increase in 2019, it has risen again by more than 10%. Palm oil fell 18.61%% in 2018, and palm oil rose 56.99% in 2019. In 2020, the palm oil market will continue to climb, with continuous gains.

On December 27, 2020, the highest price of palm oil has risen to 7374 yuan/ton. In 2018, the average price of palm oil on the market was only 4180 yuan/ton. In 2019, the average price of palm oil on that day was 6502 yuan/ton. The price difference is as high as 800-3000 yuan/ton. Compared with 2018, the price of palm oil in 2020 has a price difference of more than 3,000 yuan/ton, a three-year high.

According to the monthly fluctuation chart of palm oil from January to November 2020, it can be seen that in 2020, palm oil, like soybean oil, will fall for 4 consecutive months and then rise for 7 consecutive months. The biggest drop was in February, with a drop of up to 20%. The biggest increase was in July, with an increase of 12.47%.

Similarly, palm oil prices continued to fall due to weakening demand in the catering industry in the first four months. Starting in May, terminal demand ushered in an improvement. With the support of the external oil market, palm oil opened a rising channel. Due to the production and export data of Malaysia, the main palm oil producing country, palm oil has not fully replicated the soy oil increase, and the increase has decreased.

The annual market analysis of soybean oil palm oil in 2020 is as follows

From January to April, after the New Year's Day, the bullish factors of soybean oil and palm oil were exhausted, and prices began to plunge. At the beginning of the Spring Festival, the catering industry was hit hard and demand was sluggish. Palm oil and soybean oil, which are used for frying, were the most affected. Palm oil and soybean oil fell the most in February.
Since March, soybean oil companies have basically resumed work, and oil supply pressure has increased. Supported by the good news that Malay palm oil production has fallen sharply, the price of palm oil and soybean oil has increased to a certain extent. Due to the sluggish terminal demand and the weak rebound of oil, soybean oil palm oil Continue to oscillate downward.

From May to December, beginning in May, Malaysia announced the resumption of its biodiesel plan in September, and India resumed importing palm oil from Malaysia. With bullish support, the palm oil futures market ushered in a surge. In June, there are rumors of soybean oil purchasing and storage in the market. The state-owned group will purchase 1 million tons of soybean oil, China Grain will carry out cyclic storage, and the uncertainty of Sino-US trade relations has increased. Soy oil palm oil ushered in another wave of growth. As terminal demand has not yet fully improved, soy oil palm oil's rise was short-lived and did not rise sharply.

In July, there were frequent good news on palm oil fundamentals. Increased rainfall in the main producing country, Indonesia and Malaysia, triggered concerns about production cuts. Malaysian palm oil export data increased sharply year-on-year. Boosted by this bullish factor, the soybean oil palm oil market rose strongly. In August, market news rumors of soybean oil purchasing and storage resumed. It is expected that the country will buy and store 2 million tons of soybean oil, which will bring an exciting blow to the sluggish oil market. Soy palm oil continues to rise.

In September, with the support of terminal rigid demand, coupled with the favorable report data, palm oil export data increased, soy oil palm oil resumed its soaring pattern. As the main palm oil producing country Malaysia is in the late stage of increasing production, soy oil is gaining momentum, and palm oil has experienced a callback after the rise. During the National Day, due to the impact of the La Nina weather, concerns about the reduction of Malay palm oil production are expected to increase. After the National Day, soy oil palm oil ushered in a supplementary increase in the market, and the market rose sharply.

In November, the surge in oil palm oil was mainly driven by the US soybean news. Palm oil's ability to resist declines was poor. Because of the drag of Malaysian palm oil, palm oil still showed signs of decline and lack of momentum for the rise. Although both soybean oil and palm oil are rising overall, palm oil's growth rate is significantly lower than that of soybean oil. Since December, soybean oil palm oil is still strong, rumors of soybean oil purchases and storage delays, India's palm oil tariff policy, Malay palm oil stocks are at a low level, and bullish factors remain. Soy palm oil continues to rise.

Sum up

SunSirs agricultural products analysts believe that the soybean oil palm oil market in 2020 has continued the bull market in 2019. Because the price of soybean oil palm oil in 2020 is close to a high level and will drop in 2021, with the support of bullishness, soybean oil palm oil may still maintain an upward trend, but the increase will not be as large as in 2020.

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